Author Question: If you have a mortgage on your house at 6 percent and the inflation rate when the mortgage was ... (Read 88 times)

Marty · **on:** Jun 29, 2018

If you have a mortgage on your house at 6 percent and the inflation rate when the mortgage was acquired was 3 percent but has since increased and is now 8 percent per year; the current real interest rate is

A) -2 percent per year.
B) 8 percent per year.
C) 6 percent per year.
D) 0 percent per year.
E) 14 percent per year.

Question 2

A movement from one point on a production possibilities frontier to another represents

A) unemployment.
B) a tradeoff.
C) an advance in technology.
D) full employment of labor but not capital.
E) a free lunch.